High-NA EUV Lithography ASML Reportedly Delivers Chip Machinery to China

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The US Department of Commerce has pointed out to ASML that high-end manufacturing technology from the Dutch supplier is said to have reached China despite the export ban. ASML denies the allegations.

The Dutch semiconductor equipment supplier ASML faces new accusations from Washington. According to a Bloomberg report, US Commerce Secretary Howard Lutnick is said to have raised concerns with the company's management that one of the most advanced EUV lithography systems might have reached China.

EUV systems are considered key technology for the production of particularly advanced semiconductors. They are used, among others, by contract manufacturers like TSMC to produce high-performance processors for clients in the fields of AI, data centers, and consumer electronics. ASML is the world's sole manufacturer of such systems.

The export of EUV systems to China has been prohibited for years. If the suspicion is confirmed, it would be a serious violation of the export restrictions pushed by the U.S. However, according to Bloomberg, it remains unclear what evidence Washington has for the allegations and what the U.S. government specifically demands from ASML.

ASML Denies Delivery and Operation in China

ASML firmly denies the allegations. The company stated that it has never delivered an EUV system to China. Furthermore, components, modules, or specialized equipment specifically intended for EUV systems have not been exported there.

To support its position, ASML reportedly refers to internal documents distributed in Washington. According to these, 314 EUV systems are in operation worldwide and 26 have been decommissioned, none of which are located in China. Additionally, ASML can automatically detect interruptions, unusual behavior, or connection losses in the EUV inventory.

The technical complexity of the systems also argues against an unnoticed transfer, according to the company. EUV systems are about the size of a school bus, weigh around 180 tons, and require specialized maintenance by ASML. Customers, therefore, cannot disassemble, transport, and recommission such systems at another location without the involvement of the manufacturer.

Export Dispute Burdens the Environment

The incident impacts ASML during a tense geopolitical situation. The US has been pressuring the Netherlands and Japan for years to implement stricter restrictions on chip manufacturing equipment exports to China. In addition to EUV systems, certain DUV systems, as well as maintenance and support services, are now under greater scrutiny.

For China, the lack of access to EUV technology is a major hurdle in developing state-of-the-art chip production. At the same time, Chinese manufacturers are making progress with older systems and their own processes. This could explain why Washington is particularly sensitive to possible indications of ASML technology in China.

ASML emphasizes that it complies with all applicable export regulations and regularly communicates with governments. The company also stated that it has already disproven several unfounded rumors about violations in its China business. If ASML fails to address the concerns of the U.S. government, the case could further strain relations between the U.S., the Netherlands, and the EU.